Are sky-high property prices steering home buyers onto water?

Struggling to get a foot on the property ladder? Perhaps the answer lies on the water...

As real estate prices continue to rise in London, an increasing number of people are turning to the city's waterways. Here, narrowboats line north London's desirable "Little Venice" area of Regent's Canal.

A houseboat in the English capital will set you back anywhere between $3,000 and $250,000. "A good, mid-price range for a decent-size narrowboat to live on, second-hand, would be around £50,000 ($80,000)," says Alan Wildman of the Residential Boat Owners' Association.

While houseboats are generally a cheaper option than real estate, there are hidden costs. Long-term moorings in London can be over £20,000 ($30,000) a year.

There are around 30,000-40,000 people living on boats in the UK, estimates Wildman. He describes it as a tight-knit floating community where neighbors look out for each other.

Confined quarters means boat owners must be prepared to live lightly and utilize space.

"If you were to see us sitting on the front deck of a narrowboat on a sunny day with a glass of wine, a cheeseboard, nice music in the background, the sun going down and the mist coming up, yes that's romantic and lovely," says Wildman.

"At the same time, imagine you're out on the canal and you're iced in, and your toilet tank is getting full, and you've got to cruise half a mile to get to a pumping-out point," he adds.

Centuries ago, London's canals were primarily used to transport cargo -- a floating highway bustling with barges, connecting towns across the country.

Now many narrowboats are converted homes, offering an unusual oasis in the heart of the city. "I like the idea of being in a town but still moving around," says Sandra Reddin, who bought a $124,000 houseboat earlier this year.

A boat owner offers a sneak peek inside his floating home as part of a three-day Waterway Festival held between the British cities of Leeds and Liverpool.

Narrowboats don't just offer a home, but a unique retail opportunity, as this British ice-cream vendor happily shows.

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Waterworld

London's Little Venice

Float your boat

Cheap thrills?

Close quarters

Streamlined

River romance...

And realities

Historic vessels

The good life?

Sneak peek

Sweet surprise

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STORY HIGHLIGHTS

Can't afford to buy house? How about living on a boat?

European cities offer stunning canals -- and potential homes

Life on the water is cheaper, but has hidden costs

Romantic image, but there are harsh realities

(CNN) -- How do you get a foot on the property ladder, when you live in one of the most expensive cities in the world?

For an increasing number of first-time home buyers like Sandra Reddin, the answer doesn't lie on land -- but in the water.

"Doing the washing-up with swans floating by your window -- I love it," says the 55-year-old, who bought a houseboat earlier this year.

"People move on board thinking it's a way to get on the housing ladder -- which is absolute nonsense," says the 64-year-old, who lives on a narrowboat with his wife.

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"It can be cheaper than living in a house. But when you consider all the other components of life afloat that go with it ... people can very quickly become disenchanted."

Long-term moorings in London can be over $30,000 a year -- "and that's just for somewhere to hang your boat," adds Wildman.

Unlike real estate, houseboats decrease in value, he said. If you're thinking of taking the plunge, it has to be for love -- not money.

River romance

That said, stepping aboard Reddin's elegant 13-meter houseboat "Happy Days," it's easy to see the allure of life on the river.

Inside, the wooden vessel is bigger than you'd expect, boasting a wood fire, fully kitted-out bathroom, kitchen, and double bedroom. A golden afternoon light bounces off the water, streaming in through the long narrow windows.

Though relatively roomy, I still manage to knock my head on the low door, ungracefully exiting onto the decking for a sunset sip of wine.

"It's a very neat little operation," says Reddin, nodding towards the compact home, where everything has its place.

The photographer bought her $124,000 boat a few months ago, seeing it as an affordable way to live in the heart of the city, while constantly change the view out her window.

Taking the plunge: Sandra Reddin aboard "Happy Days."

Sandra Reddin

It now bobs in desirable north London's Regent's Canal, an area where waterfront properties regularly have million-dollar price tags.

The mother-of-two was paying $3,000 a month to rent an apartment in another part of north London when she decided to give it up for life on the water.

"You've got all these different noises," she says. "Little ducks landing on your roof, the lapping of the water, and when it rains, it's just amazing."

Tough love

Reddin is under no illusions that boat-living isn't all smooth sailing -- particularly come winter. "I'm quite a gung-ho, intrepid type. I think you need to be for this lifestyle," she says.

Wildman offers a reality check: "Imagine you're out on the canal and you're iced in, and your toilet tank is getting full, and you've got to cruise half a mile to get to a pumping-out point.